Trump suspends duty-free imports for low-value goods globally, move to hit the likes of Amazon, Alibaba

In a move that could reshape how global e-commerce goods enter the US, President Donald Trump on July 30 signed a new executive order suspending de minimis duty-free treatment for all non-postal imports regardless of origin or value. The order, effective August 29, 2025, is aimed at cracking down on the exploitation of trade loopholes by criminal networks and foreign adversaries.Trump invoked multiple national emergencies—including those related to fentanyl trafficking from Canada and Mexico, synthetic opioid supply chains in China, and the US trade deficit—to justify the action under the International Emergency Economic Powers Act (IEEPA).
“Many shippers go to great lengths to evade law enforcement and hide illicit substances in imports that go through international commerce,” the order says, alleging widespread use of deceptive practices such as false invoices and reshippers.
What all does it affect?The suspension affects all shipments that previously qualified under the de minimis threshold (goods valued at $800 or less), except for items sent via the international postal network.

Even postal shipments will now be subject to new duty structures, with specific per-item charges based on country-of-origin tariff rates. For instance:

• Countries with tariff rates under 16% will see a flat duty of $80 per item.
• Countries with rates between 16% and 25% will be charged $160 per item.
• Countries above 25% will pay $200 per item.

All other shipments must be formally entered via US Customs and Border Protection’s Automated Commercial Environment (ACE), ending the practice of using informal entry for low-value imports via courier services like FedEx, DHL, or UPS.This global suspension builds upon earlier targeted actions taken against China, Hong Kong, Mexico, and Canada in early 2025. In each case, the administration accused those governments of failing to curb the trafficking of synthetic opioids or enabling unfair trade advantages.

The administration said adequate systems are now in place to process and collect duties on all incoming shipments and that the risk of illegal activity, especially in low-value goods, demanded uniform application of tariffs. Trump’s order further states that even if courts strike down individual tariff measures, the suspension of de minimis treatment will remain in effect independently.

Impact on businesses and consumers

E-commerce platforms and global retailers reliant on the de minimis provision will face higher costs and logistical hurdles.

Major players such as Amazon, Shein, Temu, and Alibaba could be affected, as low-value shipments from Asia have surged in recent years under this tariff exemption.

What happens next?

• The suspension takes effect August 29, 2025, for non-postal shipments.
• Postal shipments retain limited de minimis privileges but will face duties unless exempted under separate laws.
• Transportation carriers must choose how to remit duties: via ad valorem rates or the fixed-per-item method.
• Customs may require additional bonds for shipments under $2,500 to ensure duty compliance.

Background

The de minimis threshold was originally intended to streamline customs clearance for low-value goods and avoid overburdening the system. Critics, including US manufacturers and labour groups, have long argued that the rule allowed foreign sellers to undercut domestic businesses and enabled smuggling of counterfeit or illicit goods.